Carmike Cinemas

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Carmike Cinemas, Inc.
TypePublic
Traded asNASDAQCKEC
IndustryEntertainment
Predecessor(s)Martin Theatres
Founded1982
Founder(s)Carl Patrick, Sr.
HeadquartersColumbus, GA, United States
Number of locations247 (as of 10/2013)
Area servedRural and suburban areas
Key peopleRoland C. Smith
Chairman of the Board
S. David Passman
President & CEO
Fred Van Noy
COO
Richard Hare
CFO
Revenue
  • Increase $634.8 million (2013)[1]
Operating income
  • Increase $59.5 million (2013)[1]
Net income
  • Decrease $5.7 million (2013)[1]
Employees7,800 (2013)[1]
SubsidiariesEastwynn Theatres, Inc.
George G. Kerasotes Corporation
GKC Indiana Theatres, Inc.
GKC Michigan Theatres, Inc.
GKC Theatres, Inc.
Military Services, Inc.
Websitewww.carmike.com
 
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Carmike Cinemas, Inc.
TypePublic
Traded asNASDAQCKEC
IndustryEntertainment
Predecessor(s)Martin Theatres
Founded1982
Founder(s)Carl Patrick, Sr.
HeadquartersColumbus, GA, United States
Number of locations247 (as of 10/2013)
Area servedRural and suburban areas
Key peopleRoland C. Smith
Chairman of the Board
S. David Passman
President & CEO
Fred Van Noy
COO
Richard Hare
CFO
Revenue
  • Increase $634.8 million (2013)[1]
Operating income
  • Increase $59.5 million (2013)[1]
Net income
  • Decrease $5.7 million (2013)[1]
Employees7,800 (2013)[1]
SubsidiariesEastwynn Theatres, Inc.
George G. Kerasotes Corporation
GKC Indiana Theatres, Inc.
GKC Michigan Theatres, Inc.
GKC Theatres, Inc.
Military Services, Inc.
Websitewww.carmike.com
Carmike movie theater in Statesboro, Georgia

Carmike Cinemas Inc. is a motion picture exhibitor headquartered in Columbus, Georgia in the United States of America. As of August 2014, the company operates or holds an interest in 254 theaters with 2,623 screens in 37 states, and is one of the largest movie theater companies in the United States. The company bills itself as "America's Hometown Theatre" and Carmike theaters are largely positioned in rural or suburban areas with populations under 200,000.[2] The company's theaters operate under various names and will generally have a name followed by the number of auditoriums at that location; for example, "Carmike 15".

History[edit]

Carmike was founded when Carl L. Patrick, Sr. acquired Martin Theatres from Fuqua Industries in 1982.[3] The company's name was derived from a combination of the first names of Carl L. Patrick, Sr.'s two sons, Carl Jr. and Michael, hence "Carmike."[citation needed]

Carmike sought Chapter 11 bankruptcy protection in August 2000 after failing to make US$9 million in interest payments to bondholders—the company owed approximately US$650 million in debt. Since declaring bankruptcy, many theaters (mostly smaller single, twin and triple theatres) in inactive markets were closed down, and some were renovated or relocated in areas with desirable market potential—most of these newer theaters are 10 screens or larger. The number of theaters owned or operated by the company dropped from 448 to just over 300.[4]

During bankruptcy, the company was forced to sell or close several historic theaters, including the Villa Theatre in Salt Lake City, Utah and the Indian Hills Theater in Omaha, Nebraska, the latter of which contained a 70-foot (21 m) wide Cinerama screen, believed to be the largest in the U.S. at the time. The Indian Hills was eventually demolished in August 2001 by its new owners, Methodist Health System, and replaced with a parking lot for the System's nearby hospital and nursing college. Actress Patricia Neal called the destruction of the theater "a crime" in a letter of support, and letters were also written by Kirk Douglas, Janet Leigh, Robert Wise and film critic Leonard Maltin.[5]

Carmike exited bankruptcy in January 2002, having successfully restructured its debts and operations.[6] A judge approved the Chapter 11 plan, filed in October 2001, which involved payment of US$263 million of Carmike's bank loans.[4]

In 2005, Carmike purchased 30 GKC Theaters (263 screens) from the heirs of George Kerasotes for US$66 million. The George Kerasotes Corporation was the result of a split with other family members who jointly owned Kerasotes Theatres. In December 2008, Mark Cuban acquired a 9.4 percent stake in Carmike Cinemas and , following a Securities and Exchange Commission (SEC) filing, Cuban explained that his interest was for investment purposes.[7]

Carmike Cinemas' board of directors removed Michael Patrick as its chief executive on January 20, 2009. S. David Passman III was selected as the non-executive chairman of the board. The board established an Office of the Chairman as a body that oversaw the company's strategic direction and the transitionary period until a new chief executive was employed—in addition to Passman, the Office of the Chairman consisted of chief operating officer Fred Van Noy and chief financial officer Richard Hare.[8] On June 4, 2009, the company announced that S. David Passman III was appointed President and Chief Executive Officer, while board member, Roland C. Smith, succeeded Passman as Carmike's Chairman of the Board. Van Noy and Hare remained in their respective positions.[citation needed]

In 2011, Carmike Cinemas acquired MNM Theatres, adding three locations (40 screens) in the Atlanta area.[9] In October 2012, Rave Cinemas, signed an agreement to sell 16 theaters with 251 screens to Carmike Cinemas for $19 million in cash and $100.4 million of assumed lease obligations. Of the 16 theaters being acquired, six are in Alabama, four in Florida, two in Indiana, and one each in Illinois, Pennsylvania, Tennessee and Texas. This is Carmike's first try with IMAX. The sale also included 7 IMAX screens.[10] Before the sale Rave owned or managed 62 theaters and 939 screens located in 21 states across the country.

On July 18, 2013 Carmike Cinemas announced that they would buy three more theatres from Rave Cinemas, a division of Cinemark Theatres located in Louisville, Kentucky; Voorhees, New Jersey; and Hickory Creek, Texas. With this change, the Voorhees and Louisville locations switched to Screenvision from National CineMedia, while Hickory Creek remains with Screenvision. The sale also included an eighth IMAX screen.[11] The sale was closed on August 16, 2013.[12]

On November 4, 2013, Carmike Cinemas purchased Muvico Theaters, LLC for just under US$31.8 million in an acquisition that included Muvico's nine locations in Florida, California and Illinois. Two Bogart's restaurants were also included in the sale and, after the sale closed at the end of 2013, the MuviXL screens was rebranded as "Carmike's BigD." Carmike's first-ever Californian location, the Thousand Oaks 14 theater, was obtained in the acquisition.[13]

Digital projection and 3D[edit]

Carmike Cinemas headquarters in Columbus, Georgia

In 2005, Carmike Cinemas launched a contract with Christie Digital Systems to convert all its auditoriums to Texas Instruments DLP projection technology. This rollout was completed in 2007 and all of the company's first run theatres were converted to digital projection.

As of October 2013, the company remained a leader in digital projection with 2,418 digital screens, of which 954 were capable of showing Real-D 3D movies.

References[edit]

  1. ^ a b c d http://c272342.r42.cf1.rackcdn.com/10k.PDF
  2. ^ Porter, Michael E. (November–December 1996). "What Is Strategy?". Harvard Business Review. 
  3. ^ "Fuqua to Sell Theater Unit". The New York Times. February 26, 1982. 
  4. ^ a b "COMPANY NEWS; JUDGE APPROVES CHAPTER 11 PLAN FOR CARMIKE CINEMAS". The New York Times. 4 January 2002. Retrieved 2 August 2014. 
  5. ^ "Historic Theater Threatened". CBS News. 18 July 2001. Retrieved 2 August 2014. 
  6. ^ Adams, Tony (January 21, 2009). "Carmike Cinemas board removes CEO Michael Patrick". Columbus Ledger-Enquirer. Retrieved on January 26, 2009.[dead link]
  7. ^ Associated Press (30 December 2008). "Billionaire Mark Cuban acquires stake in Carmike Cinemas". pantagraph.com. pantagraph.com. Retrieved 2 August 2014. 
  8. ^ "Carmike Cinemas' CEO, president Michael Patrick resigns - Quick Facts". RTT News. 20 January 2009. Retrieved 2 August 2014. 
  9. ^ "Carmike Cinemas Completes Acquisition of Three Atlanta - Area MNM Movie Theatres With an Aggregate of 40 Screens". c272342.r42.cf1.rackcdn.com. October 24, 2011. Retrieved 2014-06-03. 
  10. ^ "Carmike Cinemas to buy 16 theaters from Rave Review Cinemas" (Press release). 
  11. ^ 4-traders. "Carmike Cinemas, Inc. : Carmike Cinemas to Acquire Three State-of-the-Art Theatres Totaling 52 Screens from Cinemark". 4-Traders. Retrieved 2014-06-03. 
  12. ^ Aug, Updated (2013-08-16). "Cinemark Completes Required Divestiture of 52 Screens". DailyFinance. Retrieved 2014-06-03. 
  13. ^ "Carmike Cinemas to Acquire Nine Entertainment Complexes with 147 Screens from Muvico Theaters". The Wall Street Journal. November 4, 2013. 

External links[edit]